The ability for our agency to offer coverage in a state is associated with coverage availability and licensing. If your state is not listed, please contact our office to make sure that status has not changed.

We often get the following questions from independent contractors:

Why Should I get Business/Commercial Auto Insurance?

The requirements for having business use or commercial auto insurance on a vehicle may differ according to state laws and insurance company guidelines.

Generally you should select Business Use/ Commercial auto insurance if the vehicle is regularly used for occupational responsibilities, such as traveling between locations for sales calls or other business activities like deliveries.

Most personal auto policies will exclude coverage for the vehicle while it’s being used for business purposes. Business use or commercial vehicles are normally driven more and need different, higher limits then personal vehicles.

In general, personal use is the non-business use of a personal vehicle, including commuting to or from work or school. Business use is the use of a vehicle which is required by or primarily involved in the duties of the primary operator in his or her occupation, profession or business, other than going to or from work.

With a business policy the named insured is usually the business. The following are usually automatically included as insureds: employees; owners of borrowed vehicles; anyone using the business auto with permission. A bank or leasing company with an interest in an insured vehicle may be included as an additional insured.

Companies or customers you represent may also be included as additional insured. These companies usually require you to carry business/commercial insurance with specific liability limit minimums and additional insured requirements. These requirements can usually be located in your contract or service agreement.

Because there are variances and other eligibility clauses within these definitions that differ from insurance company to insurance company, you will need to ask our agents for further help. If your vehicle is currently covered under a personal auto insurance policy but you use the vehicle for business or commercial use then likely you will need to get a business use policy.

What is General Liability Insurance and Why Should I Carry that?

A General Liability policy is designed to provide financial protection in case your business is ever sued or held legally responsible for some injury or damage that is not associated with the operation of your vehicle. This coverage is also usually required by companies or customers you represent. Limits and additional insured requirements should be in your contract or service agreement. Commercial General Liability (CGL) usually includes coverage for:

Bodily Injury

Property Damage

Completed Operations

Contractual Liability

Legal Defense Costs

Personal Injury

Advertising Injury

Other Property related coverage can often be combined with CGL under what is known as a Business Package Policy (BPP). This can also include cargo coverage. Ask our agents to asset you with this coverage.

Do I Need Workers’ Compensation Coverage?

If one of your employees ever sues you for an injury you supposedly caused, your General Liability policy would not cover any damages. Rather, this type of protection would be provided by a Workers’ Compensation policy. Workers’ Compensation insurance is business insurance that provides medical and disability coverage for employees who sustain job-related injuries. At the very minimum, these Workers’ Compensation insurance policies will cover an employee’s medical expenses and reimburse him or her for some percentage of lost wages. Most companies are required by state law to carry Workers’ Compensation insurance. Some states have developed state funds, or pools, for Workers’ Compensation insurance, but in most states, businesses must find a private carrier for this type of business insurance policy.

Your requirement for this coverage is dependent on the state in which you operate. Some states require coverage if you have only one employee. Some states have a higher employee threshold requirement like 4 or more. Our agents can help in determining this requirement. Sometimes the companies you represent require this coverage even if you don’t have any employees. If you have any questions or concerns, let us help you!